Human life expectancy has come a long way, but with longer lives comes a need for more extensive care. Long-term care, described as help needed to accomplish basic personal tasks in everyday life, has become a necessity for many people at some point in their lives. In fact, research has shown that 58% of men and 79% of women aged 65 and older will need long-term care eventually.

If so many people require long-term care, it’s no surprise that people seek out the benefits of long-term care insurance. Let’s look at why you should consider investing in it sooner rather than later.

Cost of Long-Term Care

While your regular health insurance or Medicare may help pay for immediate medical expenses, like prescriptions or appointments, long-term care insurance helps to compensate for the costs of living with long-term, chronic illnesses. Without it, you would be responsible for paying the costs out of pocket.

That might not seem so bad. After all, how much could it really cost? Well, it depends what kind of service you need. If you only require Adult Day Health Care, you can expect to pay about $1,517/month. However, if you’re in need of more extensive care, you should be prepared to dispense an average of $8,121 monthly for a private room in a nursing home. To put it into perspective, those who are unlucky enough to develop dementia will likely be paying more than one million dollars for care over their lifetime.

Cost of Insurance Premiums

The premiums you pay for your insurance are based on your age and your health status at the time of application, so it’s best to get approved for long-term care insurance well before you actually need it.  

According to the American Association for Long-Term Care Insurance, individuals can expect a 2-4% rate increase per year in their 50s and a 6-8% increase per year in their 60s. Clearly, a long-term care insurance policy is best purchased before your sixtieth birthday.

While you may feel too young to start thinking about your future, the importance of long-term care insurance is a timely affair. For more information or to talk about your options, feel free to contact Serra Benefits & Insurance Services online or to give us a call at 760-439-9700.